The author is a Forbes contributor. The opinions expressed are those of the writer.

Loading ...

Loading ...

This story appears in the {{article.article.magazine.pretty_date}} issue of {{article.article.magazine.pubName}}. Subscribe

One-day fantasy sports operator FanDuel has made its overall financial information public, with figures dating back to the first quarter of 2011. Its Investors page provides the amount of money FanDuel has received from users paying entry fees to participate in daily fantasy games and includes the money it has delivered to users in the form of prize pools to generate a total revenue for the company (before taking into consider other costs including maintenance of the website, employee salaries, etc.). The result reveals a company that appears to be quite healthy, with constantly expanding revenues.

In the first quarter of 2014, FanDuel received $5,376,644 in revenue based on $62,712,251 of entry fees subtracted by $57,335,607 in prize pool offerings. The company has revenue of $4,450,736 in April and May alone, and expects a final total of roughly $6.5 million in revenue in the second quarter of 2014. Its end-of-year projection is approximately $40 million in revenue.

FanDuel's best quarter to date is Q4 2013, when the company brought in $7,411,137 in revenue. The logical reason for a spike in Q4 is that it is the heart of the National Football League season. According to the Fantasy Sports Trade Association, 70% of fantasy sports players pick football as their favorite fantasy sport. Football predominates fantasy and FanDuel is a benefactor of same. Thus, it is feasible that Q4 2014 will demonstrate even larger revenues for FanDuel, with continued growth of one-day fantasy sports and FanDuel as an operator.

The chart provided by FanDuel indicates roughly $2.5 million in revenue for April 2014 and $2 million May.

FanDuel made it clear to FORBES that if the company has a tournament where the total entry fees are less than the prize pool, it accounts for the difference as negative revenues, and net it against its revenue figure. Thus, what one sees on the Investors page is what FanDuel truly takes in from its games alone (again, not including other costs the company may incur each quarter).

Investors are likely impressed by expanding revenue figures as well as the rapid growth of FanDuel's user base. There were only 3,198 paid actives in Q1 2011. In Q4 2013, that number was up to more than 192,000.